How do I register for Making Tax Digital for Income Tax?

Understanding Making Tax Digital for Income Tax

Making Tax Digital for Income Tax (often shortened to MTD for Income Tax, MTD IT, or MTD for ITSA) is a UK government initiative that changes how certain people report income and expenses to HM Revenue & Customs (HMRC). Instead of sending one Self Assessment tax return once a year, people within scope will keep digital records and send regular updates through compatible software. At the end of the tax year, you’ll still finalise your position, but the reporting rhythm and the way records are kept is different from traditional Self Assessment.

If you are used to the annual Self Assessment routine, the biggest shift is behavioural: you move from “collect everything and report at the end” to “maintain records as you go and report periodically.” Registering is the formal step that tells HMRC you intend to comply through MTD, and it’s also what links your identity, your tax obligations, and your software to the new process. This article walks you through how registration works in practice, what you need before you start, common pitfalls, and how to set yourself up so the process is smooth.

Who needs to register and when

Registration is not a one-size-fits-all event. Whether you need to register depends on your status (for example, sole trader or landlord), the type of income you receive, and whether you meet the relevant criteria for MTD for Income Tax. In general terms, MTD for Income Tax is aimed at individuals who report business or property income and currently file Self Assessment. If you have multiple sources of income, you may still be within scope if you have qualifying business or property income.

Some people will register as part of a mandated move into MTD, while others may choose to register voluntarily (for example, to get familiar with the process ahead of time). If you are registering voluntarily, you should still treat the process seriously: registration can change the way HMRC expects you to submit information, and switching back is not always straightforward once you have started reporting digitally for the relevant income streams.

If you are unsure whether you should register right now, the best approach is to plan as though you will need to, then confirm eligibility based on your circumstances. The “planning” part means gathering your information, checking your HMRC accounts and Self Assessment status, and choosing software. That way, even if you find you don’t need to register yet, you are not scrambling later.

Before you start: what you need to have ready

Most registration problems happen because people begin the process without the right information or without having set up the accounts that HMRC uses to identify them. A little preparation can save you a lot of time.

1) An HMRC online account and Government Gateway credentials

To register for MTD for Income Tax, you typically need an HMRC online services account. This usually means having Government Gateway credentials (a user ID and password). If you have filed Self Assessment online before, you probably already have this, but it’s worth confirming you can log in successfully before you start any registration steps.

If you have access issues, deal with those first. Password resets, locked accounts, and out-of-date contact details are common blockers. Make sure your email address and phone number are up to date so you can complete any verification checks.

2) Your National Insurance number and personal details

Have your National Insurance number, full name as it appears on official documents, date of birth, and current address ready. HMRC registration flows can require you to confirm identity, and minor inconsistencies (like an old address) can slow the process.

3) Self Assessment status and Unique Taxpayer Reference (UTR)

If you are a sole trader or landlord already in Self Assessment, you will have a Unique Taxpayer Reference (UTR). Keep it to hand. If you are not currently registered for Self Assessment but you need to be (for example, you have started self-employed trading or you receive property income that must be declared), you should address that first because MTD for Income Tax generally assumes you are in the Self Assessment system.

4) Awareness of your VAT position (if relevant)

Many people confuse MTD for VAT and MTD for Income Tax. They are related in the sense that both are part of Making Tax Digital, but they are different obligations with different registration and reporting requirements. If you are VAT-registered, check how your VAT obligations are currently handled and ensure you don’t accidentally conflate the two processes when choosing software or granting permissions.

5) A clear idea of what income streams you will report under MTD

MTD for Income Tax relates to business income and property income. If you are a sole trader and a landlord, you might have to manage both streams. Registration and software setup can be influenced by whether you will report one or both, and how your records are structured.

6) Compatible software selection and readiness

You can’t file MTD submissions using a basic spreadsheet alone without an appropriate digital link to MTD-compatible software. Some people keep records in spreadsheets and use bridging software; others use cloud accounting software; and some choose a simpler record-keeping tool designed for sole traders. Your choice affects registration because you will usually link your HMRC account to the software.

Before registering, decide which software you will use and ensure it supports MTD for Income Tax (not just VAT). If you already use accounting software, check whether your subscription includes the required MTD functionality and whether it can handle your business type (for example, cash basis accounting, multiple properties, or multiple trades).

Choosing how to register: agent or self-registration

There are two broad ways to approach registration: you register yourself, or you register through an agent such as an accountant or tax adviser. The best option depends on your confidence, the complexity of your finances, and how you want to manage ongoing reporting.

Registering yourself

If your situation is straightforward (for example, one sole trade with simple expenses, or one rental property), you may prefer to register and manage reporting yourself. You will need to be comfortable with digital record keeping and software setup. The upside is control and potentially lower costs. The downside is that you are responsible for meeting deadlines and ensuring submissions are accurate.

Registering with an agent

If you already use an accountant, or you have more complex circumstances (multiple income sources, jointly owned property, multiple trades, or significant adjustments at year end), using an agent can reduce stress. Agents can help with registration, software configuration, and ongoing submissions. Usually, this involves authorising the agent to act for you with HMRC and ensuring they have the right digital permissions.

Even with an agent, it is wise to understand the basics of the process so you can spot issues early and maintain good records.

Step-by-step: how to register for Making Tax Digital for Income Tax

The specific on-screen journey can change over time, but the practical steps are consistent. Think of registration as three linked parts: (1) confirming eligibility and timing, (2) ensuring you can access HMRC online services, and (3) connecting your chosen software to HMRC and completing the sign-up process.

Step 1: Confirm you are ready to move your reporting to MTD

Before you click anything, confirm the tax year you intend to start reporting under MTD. Registration typically ties you to a start date or period. If you register too early without being prepared to keep digital records, you can create avoidable compliance pressure. If you register too late, you risk missing the start requirements.

As part of this readiness check, review your current Self Assessment obligations and whether you have any outstanding returns or overdue payments. It is generally easier to transition to a new reporting method when your existing obligations are up to date.

Step 2: Make sure your HMRC online access is working

Log in to your HMRC online account and verify you can see your Self Assessment details. If you cannot access Self Assessment, resolve that first. Some users have a Government Gateway account but are missing the link to Self Assessment because they signed up years ago under a different profile, changed details, or never completed activation for certain services.

If you need to add Self Assessment to your HMRC online services, you may need your UTR and additional identity checks. Do this ahead of time so you are not stuck mid-registration.

Step 3: Choose MTD-compatible software that fits your needs

Software is the engine of MTD. Choose it based on how you actually operate. If you issue invoices, track mileage, and have regular expenses, a simple bookkeeping tool may be enough. If you have stock, multiple bank accounts, complex expense categories, or you want automated bank feeds and reporting, a fuller accounting package may suit you better.

Also consider your comfort level. Many people choose software that is too complex and then struggle to maintain records consistently. The best choice is often the simplest tool that still meets requirements.

Step 4: Create your software account and set up your business profile

Once you choose software, create your account and enter your basic details: business name (if applicable), trading start date, business address, and accounting method preferences. If you have rental income, you may need to set up a property or landlord profile. If you have multiple income sources, make sure the software can separate and report them correctly.

At this stage, you do not need to have every transaction entered, but you should confirm the software is configured so that your record keeping will be structured correctly going forward.

Step 5: Link the software to HMRC (authorisation)

Most MTD-capable software will prompt you to connect to HMRC. This usually involves clicking a “Connect to HMRC” or “Authorise” button in the software, which takes you to an HMRC sign-in page. You will log in with your Government Gateway credentials and then grant the software permission to interact with HMRC on your behalf for MTD purposes.

This authorisation step is crucial. It is what allows your software to submit updates and pull back confirmation data. Be careful during authorisation to log in as the correct person (especially if you have multiple Gateway accounts or if you also access an organisation’s account). If you connect the wrong account, you can create confusion that’s difficult to untangle.

Step 6: Complete HMRC’s MTD for Income Tax sign-up flow

After authorising software, you typically complete a sign-up step that indicates you want to join MTD for Income Tax. This may include confirming your identity, your UTR, and the income sources that will be included. If you are signing up for both trading and property income, make sure both are included if required by your circumstances.

During this stage, you may receive confirmation messages or emails. Keep these, and note any effective date. Registration is not always instantaneous in the sense that you can immediately file everything; there can be a short period where HMRC systems update your status. Even without long waits, it is wise to allow yourself time before the first submission deadline so you are not rushing.

Step 7: Confirm registration is successful in both places

Do not assume registration is complete just because you clicked through screens. Confirm in your software that the HMRC connection is active and that the software indicates you are enrolled for MTD for Income Tax. Also verify in your HMRC account that your status reflects the change, if your account displays it.

Many software packages include a “connection status” or “HMRC authorisation” section. Look for green indicators, successful connection messages, or a test connection feature. If the software shows errors, resolve them before you attempt any filings.

Step 8: Set up your record-keeping workflow

After registration, the most important step is not another form; it’s creating a sustainable routine. Decide how you will capture income and expenses, how often you will reconcile bank transactions, and where you will store receipts and invoices. The best workflow is one you can keep up with every week or month.

For example, you might choose to:

1) Connect a bank feed (if available) and review transactions weekly.

2) Photograph and upload receipts as you incur expenses.

3) Categorise income and expenses monthly.

4) Do a quarterly review before submitting an update.

This routine reduces end-of-year stress and makes the MTD reporting cadence manageable.

What happens after you register: the reporting cycle in plain English

Registering is the gateway to a new reporting style, not the end goal. Understanding what happens next will help you register at the right time and avoid surprises.

Quarterly updates

Under MTD for Income Tax, you will send periodic updates during the tax year using your software. These updates reflect the information recorded so far and are based on your digital records. They are not necessarily your final tax calculation, but they are a way of keeping HMRC informed and keeping you on track.

End of period statements (where applicable)

After the tax year ends, you usually need to finalise your business and/or property figures. This is where you make end-of-year adjustments, claim reliefs, and ensure everything is complete. Depending on how you operate, this might include accounting adjustments, capital allowances, or corrections for items that were not captured accurately during the year.

Final declaration

You will also need to make a final declaration that confirms your overall income for the year and completes the process for that tax year. People often describe this as the “MTD version” of the Self Assessment return. The mechanics are different, but the purpose is similar: to confirm the final position and ensure everything is declared correctly.

Common registration pitfalls and how to avoid them

Even people who are confident with online systems can stumble when registering. Here are the problems that come up most often, and how to prevent them.

Using the wrong Government Gateway account

If you have ever helped a family member with their taxes, set up a business account, or registered for another service, you may have multiple credentials. When connecting software to HMRC, make sure you are logging in with the credentials that correspond to the individual whose income tax reporting will be done under MTD. A simple mix-up can lead to hours of confusion.

Trying to register without Self Assessment properly set up

If you have trading or property income that requires Self Assessment but you have not registered for Self Assessment yet, you may not be able to complete MTD registration smoothly. Ensure your Self Assessment is active and you have a UTR before you begin.

Registering while you have outstanding obligations

If you have overdue tax returns or unresolved issues with HMRC, try to address them before moving into MTD. While not every issue will block registration, unresolved items can complicate your account status and create mixed messages about what HMRC expects next.

Choosing software that doesn’t actually support MTD for Income Tax

Some products support Making Tax Digital for VAT but not MTD for Income Tax. Others support both but require a specific plan level. Confirm that your tool supports MTD for Income Tax for your type of income and that your subscription includes the necessary features.

Not setting up categories correctly from the start

MTD reporting depends on the structure of your records. If you categorise transactions inconsistently, you will struggle later. Take time in the first month to ensure income and expense categories make sense and match what you will need for reporting. If your software offers templates for sole traders or landlords, use them.

Forgetting jointly owned property nuances

If you own property jointly, the income and expenses you report for tax purposes may reflect your share rather than the total. Your records should make it easy to track your portion. When setting up software, consider how it handles shared ownership and whether you need to record totals and then allocate shares, or record only your share from the outset.

Assuming quarterly updates are “final”

Quarterly updates are based on records to date and may not include all adjustments. Don’t panic if your estimated tax position shifts. The key is to keep records accurate and handle year-end adjustments properly when finalising.

Practical checklist: a smooth registration in one sitting

If you want to register without interruptions, use this checklist before you begin:

1) You can log in to HMRC online services with your Government Gateway ID and password.

2) You can access your Self Assessment area and you have your UTR.

3) Your personal details (name, address, contact details) match HMRC records.

4) You know whether you will report self-employment income, property income, or both.

5) You have chosen MTD for Income Tax compatible software and created an account.

6) You are ready to authorise the software to connect to HMRC.

7) You have time to verify the connection and confirm successful enrolment.

8) You have decided how you will keep digital records from now on.

What if you are a landlord only?

If your taxable income is from property (for example, UK property rental income) and you report it through Self Assessment, MTD for Income Tax registration will typically focus on the property income stream. In practice, this means choosing software that handles rental income and related expenses clearly and allows you to send the required updates.

Landlords often have a mixture of regular costs (letting agent fees, repairs, insurance) and irregular costs (major works, replacements). A good setup makes it easy to attach receipts and notes to each expense and to separate capital-type costs from routine repairs where appropriate. While this article is about registration, it’s worth thinking about this upfront because the software you choose will influence how easy it is to keep records once registered.

What if you are self-employed only?

Sole traders often find registration more straightforward because their record keeping can be simplified. The challenge is consistency. If you have many small expenses, cash receipts, mileage, or mixed personal and business spending, your workflow matters. When registering and setting up software, consider how you will capture and classify transactions reliably.

If you use a separate business bank account, things are often easier. If you use a personal account for business spending, you can still comply, but you will need a disciplined method to mark which transactions relate to the business. Some software tools have features for this; others rely on manual categorisation.

What if you have both a sole trade and property income?

When you have more than one income stream, the main registration concern is making sure your software supports both and keeps them distinct. Your reporting obligations may involve separate updates for each stream. This is where an agent can be particularly helpful, but it’s still manageable for many individuals who are comfortable with accounting software.

In your setup, aim for clear separation:

1) Separate income categories for trading and property income.

2) Separate expense categories for each activity.

3) A consistent method for allocating shared costs (for example, if you have a phone bill used partly for the business).

This separation makes quarterly updates easier and reduces the chance of confusion at year end.

How to handle registration if you want an accountant to do it

If an accountant will manage MTD for Income Tax for you, the process often involves you completing identity steps while the accountant handles configuration. In practical terms, you may need to:

1) Confirm your HMRC login works.

2) Sign an authorisation that allows the accountant to act as your agent.

3) Provide key details such as your UTR and National Insurance number.

4) Agree on software: your accountant may use a preferred platform, or they may support multiple options.

5) Decide how you will supply records: you might use an app to photograph receipts, forward invoices, or connect bank feeds so the accountant can reconcile transactions.

Even if your accountant handles submissions, you still benefit from understanding registration milestones and keeping good records. MTD does not remove your responsibility to provide accurate information; it changes the method and timing of reporting.

Troubleshooting: what to do if registration doesn’t work

If you hit a snag, the key is to isolate whether the issue is with identity access, Self Assessment linkage, software connection, or the MTD sign-up itself. Here are practical steps you can take without getting lost.

Problem: You can’t log in or verify your identity

Reset your password, confirm your access to the email/phone number used for verification, and make sure your personal details match HMRC records. If you have moved recently, update your address in your HMRC account before trying again.

Problem: Your Self Assessment service isn’t showing in your account

This may indicate you’re logged into a Gateway account that isn’t linked to your Self Assessment profile, or that Self Assessment hasn’t been added as a service. Use your UTR to connect Self Assessment to your online account, and double-check you are using the correct credentials.

Problem: Software authorisation fails

Ensure pop-ups are allowed in your browser, try a different browser, and check that the software is asking for the correct type of HMRC authorisation. Some failures occur because the software is trying to authorise VAT services or another tax service rather than MTD for Income Tax. If the software offers multiple HMRC connections, choose the one that explicitly relates to Income Tax or MTD for Income Tax.

Problem: You authorised the software, but it still says you’re not enrolled

Authorisation and enrolment are linked but not identical. You may have granted permission without completing the enrolment step, or the software may need you to refresh the connection. Look for an enrolment checklist inside the software and confirm each step is completed. If you have recently changed your HMRC details, try signing out and back in, then re-check connection status.

Problem: You registered, but you’re unsure what to submit next

After registration, focus on setting up your digital records and understanding the schedule your software uses for updates. Many tools show a timeline or upcoming obligations. If your software provides prompts like “Next update due” or “Quarterly period,” use those prompts to set your routine. If you feel uncertain, consider a short session with an accountant or bookkeeper to confirm your setup is correct before the first submission.

Preparing for success: habits that make MTD much easier

Registration is a milestone, but your day-to-day habits determine whether MTD feels manageable or overwhelming. Here are habits that consistently make a difference.

Keep business money separate where possible

If you can use a separate bank account for business activity, your record keeping becomes simpler. You can still comply without one, but separation reduces miscategorisation and speeds up reconciliation.

Capture receipts immediately

The moment you get a receipt, photograph it and upload it to your system. If you wait until the end of the month, you will lose some receipts or forget what they were for. Many people find that this single habit reduces stress more than anything else.

Reconcile on a schedule

Pick a recurring time each week or month to review transactions. Consistency matters more than frequency. A monthly routine works well for many, while weekly works well if you have frequent transactions.

Add notes for anything unusual

If you have an expense that is not obviously business-related (for example, a shop that sells both personal and business items), add a short note. Your future self will thank you when you review records later.

Do a pre-submission check before each update

Before you submit an update, review your top income and expense categories for obvious anomalies. Look for duplicates, uncategorised items, or unusually large figures. A five-minute review can prevent bigger corrections later.

Frequently asked questions about registering for MTD for Income Tax

Do I still need to file a Self Assessment tax return?

MTD for Income Tax changes the reporting process, but it does not remove the need to finalise your tax year position. You will submit updates during the year and then complete year-end finalisation steps, including a final declaration. The annual “wrap-up” still exists, but it is supported by digital records and periodic submissions.

Can I keep records in spreadsheets?

Some people prefer spreadsheets. The key requirement is that records are digital and that submissions to HMRC are made through compatible software. Many people use bridging software to connect spreadsheets to HMRC in a compliant way. If you go this route, ensure your process is robust and that you maintain digital links without manual copying and pasting that breaks digital continuity.

What if I have very little business activity?

Low activity does not automatically mean you can ignore MTD if you are within scope. However, low activity can make compliance easier because you have fewer transactions to record. The best strategy is still to maintain regular digital records and submit updates as required.

Is registration reversible?

In many cases, once you are reporting under MTD for Income Tax for a particular income stream, you should treat it as a committed change for that reporting period. If your circumstances change, you should seek advice or check what actions are required to remain compliant. Plan your registration timing carefully so you are not trying to undo it later.

Do I need separate software for trading and property?

Not necessarily. Some platforms handle both, while others are specialised. If you have both income streams, it is usually simpler to use one system that can separate them clearly, but the best choice depends on your workflow and the tools available to you.

Putting it all together: a simple registration plan

If you want a straightforward plan to follow, here is a practical approach that works for most people:

1) Confirm your HMRC online account access and Self Assessment linkage.

2) Gather your UTR, National Insurance number, and up-to-date personal details.

3) Choose MTD for Income Tax compatible software that suits your needs and budget.

4) Set up your software business and/or property profile.

5) Authorise the software to connect to HMRC using the correct Government Gateway credentials.

6) Complete the MTD for Income Tax sign-up within the HMRC flow and record your confirmation.

7) Verify that software connection and enrolment are fully active.

8) Establish a routine for capturing receipts, categorising transactions, and reconciling accounts.

9) Before your first update, run a quick review to ensure your categories and records make sense.

Following these steps turns registration from a confusing administrative task into a clear project with a defined endpoint: a working system that you can maintain without last-minute panic.

Final thoughts

Registering for Making Tax Digital for Income Tax is less about filling in a form and more about committing to a new, more continuous way of managing your tax records. The most important success factor is preparation: make sure your HMRC access works, confirm your Self Assessment details are correct, choose appropriate software, and then complete the authorisation and sign-up steps carefully.

Once registered, your ongoing workload becomes lighter if you build good habits early. Keep records up to date, review transactions regularly, and treat each quarterly update as a routine checkpoint rather than a crisis. With the right setup, MTD can reduce year-end stress and give you a clearer picture of your income and expenses throughout the year.